Providing Condo Documents
If the property is part of a homeowners or condominium association, the buyer will review the HOA’s governing and financial documents (aka condo docs) as part of their due diligence. These condo docs are provided & paid by the seller. Your attorney will coordinate with your association to collect these documents.
The buyer and their attorney will review these documents for red flags. They will be mainly looking for:
- Terms that may restrict their intended use of the property – i.e. the association doesn’t allow pets and they have a dog, the association has imposed leasing restrictions and they intend to rent, etc.
- Any indication that they may incur unexpected financial obligations – i.e. increased monthly assessment, special assessment, etc.
Once the buyer receives the documents, they have 5 business days to review. If no concerns are raised within the 5 business days, this contingency is waived.
Important to note: this is a separate contingency from the attorney review and inspection contingencies. Associations have varying lengths of turnaround time for these documents, so the buyer may not receive them until attorney review is closed.
These are possible condo documents that may be provided. Some associations are smaller & more informal, so they may not have every document listed here.
- Recorded declaration, bylaws and all exhibits, including the condominium survey (identifying the unit’s limited common elements, including storage and parking spaces)
- Current and prior years’ budget
- 22.1 disclosure statement
- Paid Assessment Letter
- Past 12-24 months of meeting minutes
- Rules and regulations (if available)
- Reserve study (if available)
- Balance sheet (if available)
- Move-in requirements/sales packet (if available)
If you are the president of your HOA, your attorney will have another officer of your building sign off on any documentation.
Next Up » Closing Costs Breakdown